June 14, 2021

The Argentine minimum wage will rise 35% and unions see it insufficient

The minimum wage in Argentina will rise by 35% in three installments, the Government decided on Friday to not reach an agreement at the Salary Council meeting, and some unions that attended the meeting crossed out the measure of not being "sufficient", due to the crisis that plagues the country.

The Minister of Production and Labor, Dante Sica, lauded this afternoon to set the minimum wage, with a rise of 35%, in three tranches: 13% from August, 12% in September and 10% in October, confirmed Efe official sources.

The monthly minimum would go from 12,500 pesos (200 dollars, according to current values), as agreed on August last year, to be around 16,800 pesos monthly (about 270 dollars).

After the meeting, in which they discussed the increase for the minimum and maximum unemployment benefits, different workers' representatives expressed their disagreement with this measure.

"It is not sufficient or acceptable (…). On the part of the General Confederation of Labor (CGT) we believe that it would have to have a value that is accompanied by the fall in income, especially in the most vulnerable sectors," he said. Secretary of the CGT, Héctor Daer, whose organization requested to raise the minimum wage to about 31,000 pesos ($ 500)

Poverty covers 32% of the population, according to official data and unemployment reached 10.1% in the first quarter of 2019.

The inflation figure for July compared to June showed a moderation of the inflation trend compared to the magnitudes that had been recorded in March (4.7%), April (3.4%), May (3.1% ) and June (2.7%).

However, this week's financial turbulence, after the adverse reaction of the markets to the defeat of the ruling party in the primaries last Sunday, suggests that inflation will accelerate in August, so the purchasing power of the Argentines would continue to decrease .

"This Government is taking late, unilateral measures and (…) they still do not solve the underlying problem. With this type of measures the capital flight is not stopped (…) and they are also emptying the Central Bank and going to leave the future government unreservedly. "

In just three weeks, Argentina has lost a little more than 10,000 million dollars of reserves, which are around 56,000 million dollars, an indentation that is partly explained by the currencies dumped by the Central Bank to the market to try to stabilize the type of change.

During the day, unions and social organizations conducted several mass marches to demand improvements in line with the serious economic situation that workers and unemployed are going through.

Some of these institutions, including the Central of Workers of the Autonomous Argentina (Autonomous CTA), asked to establish a trigger clause so that wage increases are carried out automatically.

(tagsToTranslate) minimum (t) Argentine salary (t) (t) labor unions (t) insufficient

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